Which Tax Applicable on Direct Sale

[NILESH PITALE]

Dear Expert

One of Our Client is Registered under Gujarat State and He has to sale the Goods to his Customer In Gujarat and he is also Registered under Gujarat. for Such transaction our Client is purchasing the Goods from Maharashtra state and Directly Dispatching the goods from Maharashtra to Gujarat - Under Such Case Which Tax should Levied from Gujarat to Gujarat sale.. Whether CGST/SGST Applicable or IGST Applicable

Please Guide

AI Summary

Destination-based taxation: inter-state acquisition attracts IGST while intra-state resale requires CGST and SGST on the supply.
The upstream sale from the vendor in the origin state to the purchaser in the destination state is an inter state supply subject to IGST; the purchaser's onward sale to a customer within the same state is an intra state supply subject to CGST and SGST. A bill to/ship to invoice may be used for direct delivery, and IGST paid on acquisition is available as input tax credit while destination taxation requires charging CGST and SGST on the subsequent local supply.